Part 4: Facilitating ageing-in-place - Implications for Care

Part 4: Facilitating ageing-in-place – Implications for Care

To Care or No Care? Lessons from Vision’s Journey

Continuing on from our last article on services infocusing on the services considerations to facilitate aging-in-place in retirement villages, this piece explores a real-world example of integrated care services at Hunters Hill Lodge, a village we manage. This case study highlights how a well-coordinated approach to care can enhance residents’ quality of life and support their evolving needs.

In our previous article, we identified key care services as:

The retirement village industry has evolved significantly over the past five years, shifting from a predominantly lifestyle-driven model to one that integrates care as a core component. While operators navigate the extent of their involvement in care—whether through insourced or outsourced models—resident expectations have advanced, with more seniors expecting a continuum of care.

Vision has successfully navigated this transformation, delivering a compelling customer-value proposition that enriches resident experiences, fosters a thriving community, and drives positive outcomes for both residents and village operators.

The Rise of Integrated Care in Retirement Villages

The retirement living sector is experiencing varied responses to the growing demand for care. Some operators have embraced a care consortium model, becoming approved providers themselves, or establishing brokerage agreements with existing providers. Others have moved away from co-located retirement living and aged care facilities, opting instead for private aged care hubs within their developments. These hubs enable residents to transition seamlessly into short-term or long-term care services without requiring relocation to traditional aged care facilities.

According to the 2023 PwC census, 61% of operators reported actively providing regulated home care services to residents within villages or to seniors living externally—an increase from just 30% in 2021. This trend not only reflects the government’s ongoing investment in home care as a preferred model, but more importantly, our market’s preference as well signalling continued expansion in care services within retirement villages.

The integration of care into retirement living not only meets resident demand but also enhances the long-term sustainability of operators.

Industry leaders agree that the integration of care is now fundamental to successful retirement living. “Operators who invest in scalable, compliant care models are positioning themselves for long-term success,” says a leading aged care consultant. “Residents increasingly expect a continuum of care that allows them to age in place without sacrificing independence or community engagement.” (Source: Digital Edition, Issue 84, ‘Care on Demand: The New Village Value Proposition,’ Sep 13, 2024, Lauren Broomham)

Vision's Integrated Care Model at Hunters Hill Lodge

Vision has implemented a forward-thinking care model at Hunters Hill Lodge; a serviced apartment village it has managed for over two decades. Hunters Hill Lodge offers private, serviced apartments, personalised care, welcoming communal areas and lush gardens. It’s not just a place to live; it’s belonging to a community that feels like home. By proactively integrating care services, the village has created a seamless ageing-in-place experience for residents, while enhancing the overall customer value proposition.

The integration of care into the Hunters Hill Lodge community dates back to the early 2000s when the village participated in the Retirement Villages Care Pilot.

This initiative laid the foundation for incorporating care services into the community, ensuring residents had access to support when needed.

Between the early 2000s and 2020, the uptake of care services remained steady, but the primary focus of the village was still on lifestyle. Care was generally accessed only in times of need, rather than being a core part of the resident experience. However, since 2020, there has been a significant shift toward making care a key component of the village’s customer proposition. This transition has been driven by an aging resident cohort, alongside new residents who tend to be older and in greater need of care services.

Key Initiatives Driving Success

Several strategic initiatives have been crucial in strengthening Vision’s care model:

Empowering a Committed Workforce – Engaging and supporting staff to ensure they are equipped to deliver high-quality, resident-centered care.
Strategic Partnerships – Collaborating with approved Home Care, Department of Veterans’ Affairs (DVA), and Commonwealth Home Support Programme (CHSP) providers to help residents fund care services through government-supported programs.

Investing in Infrastructure and Technology – Implementing tailored software and management systems to support robust care practices, compliance, and operational efficiency.
Change Management and Resident Engagement – Proactively engaging both staff and residents in the transition to an integrated care model, ensuring buy-in and minimizing concerns about the village evolving into a ‘nursing home.’
Scalability and Workforce Expansion – Investing in management structures and compliance frameworks to sustain the growth of care services and maintain service quality.
Transparent and Costed Care Plans – Providing residents and their representatives with clear, structured, and financially transparent care arrangements.
Evolving Village Contracts – With a more care-oriented offering, Hunters Hill Lodge has naturally attracted an older cohort of residents with more immediate care needs. In response, we have modified resident agreements to better align with their requirements while also enhancing operator returns.
- Transition from Strata to Licence Agreements – Over the past two years, we have shifted away from strata contracts—originally in place since the village’s inception. This transition provides residents with greater certainty regarding buybacks and the cessation of levies, ensuring a more streamlined and supportive financial arrangement.Under the new license agreements, the operator assumes responsibility for compulsory buyback liabilities, ensuring residents have certainty about when their exit entitlements will be paid.
- Optimising DMF Structures – The DMF structure has evolved from a pre-2015 contract, which applied a 30% DMF over 10 years and allowed the resident to retain 100% of the capital gain upon resale. The current structure applies a 30% DMF over 3 years on the ingoing contribution, with the operator retaining 100% of the capital gain.

Challenges in Transitioning to an Integrated Care Model

Throughout our journey, we’ve faced challenges that demanded strategic thinking and adaptive solutions. Some of these key challenges include:

Change Management: Requires cultural shifts for staff and residents. More independent residents may worry about the village becoming an “aged care facility.” Clear communication about the benefits and suitability considerations is essential.

Community Vibrancy: As the community ages and residents become frailer, there is a risk of reduced engagement in village activities, which may impact the overall vibrancy of the community. To address this, the development of village activity programs should proactively consider strategies to encourage participation and inclusivity, ensuring a supportive environment for all residents.
Scalability: Growth in care teams necessitates robust management and operational support.
Management Structure: Regular review of management structures and staff qualifications ensures optimal support for both residents and staff.
Infrastructure Needs: Villages must allocate space to support a larger workforce and increased clinic requirements.
Service and roster scale up and down – Margin Pressures: As demand for care services fluctuates, staffing levels must be carefully balanced to maintain both service quality and financial sustainability. Effective workforce planning is essential to optimising service delivery while managing margin pressures in a dynamic care environment.
Compliance – Expanding care services within a retirement village introduces complex compliance requirements across multiple areas. These include workforce legislation, adherence to care principles, medication management, and ensuring staff receive proper training to meet regulatory standards. Navigating these requirements requires ongoing oversight, staff education, and procedural refinement to maintain high-quality care while remaining fully compliant with industry regulations.
Flow on impacts – There are numerous consequences of a frailer resident population that will inevitably arise. Frailer residents are more likely to spill more food (more cleaning), not quiet make it … (more cleaning), exhibit more frustration to other resident’s and staff, managing family expectations. These and many other small consequences of a frailer community will occur and need to be budgeted for.

Outcomes: Driving Success through Strategic Repositioning

Despite initial challenges, particularly during COVID-19, strategic repositioning efforts—including branding, contract restructuring, and enhanced care services—have delivered strong operational and financial results. By focusing on improved care delivery and a stronger community ethos, Hunters Hill Lodge has significantly increased resident satisfaction, occupancy, and revenue.

Key Achievements

Higher Occupancy Rates: Increased village occupancy through strategic initiatives.
Property Value Growth: Strong price growth reflecting increasing demand and higher occupancy.
Expanded Care Services: Care service hours delivered have quadrupled in the last five years.
Resident Satisfaction: Significant improvements in satisfaction with care services.

By embedding care at the core of its offering, Hunters Hill Lodge has successfully transitioned from a traditional retirement village model to a vibrant, supportive community. Residents now enjoy enhanced independence, quality of life, and tailored support services that meet their evolving needs.

Optimising the Future of Care Integration

To ensure the long-term success of integrated care, Vision continuously evolves its services and delivery models to remain fit for purpose and aligned with residents’ evolving expectations. This ongoing refinement ensures that we provide high-quality, responsive care that meets both current and future needs.

Expanding proactive wellness services alongside traditional care offerings.
Developing innovative care models that blend technology, in-home support, and community engagement.
Simplifying financial arrangements to attract older residents who require care services. Resident agreements must be fit for purpose, considering trends in shorter stays and a preference for guaranteed buyback options and service packaging.
Managing risks and anticipating regulatory changes in the home care system.

The integration of care within retirement villages is not a passing trend—it is the future of the industry. Operators who embrace this shift with strategic planning, investment in infrastructure, and a commitment to resident-centered care will be best positioned for long-term success. Vision’s approach at Hunters Hill Lodge exemplifies how forward-thinking strategies can create vibrant, sustainable communities that truly facilitate ageing-in-place.

Vision is amazed at the number of communities whose operating model hasn’t changed over the last decade or even two. Operating models that have not kept pace with the evolving market will flounder whilst communities and operations that evolve to meet the changes will prosper.

If you would like more information or wish to discuss how we can assist you facilitate ageing-in-place in your current or planned retirement community, please get in touch by visiting us at www.visionlp.com.au, email [email protected] or phone (02) 8539 7710.

We will be delving into the legal & financial and social offering components and the key considerations to facilitate ageing-in-place in upcoming articles which you can subscribe here.